Trading Update (3935W)

TIDMTEL

RNS Number : 3935W

Teliti International Ltd

30 January 2012

Teliti International Ltd.

("Teliti" or the "Company")

Trading Update

Teliti International Ltd (AIM: TEL), the datacentre and IT business, provides the following update on trading following its admission to AIM on 3 November 2011 ("Admission").

Datacentre

The Company has focused primarily on the completion of its state-of-the-art purpose-built datacentre ("the Datacentre"), which is located on the outskirts of Kuala Lumpur. At 120,000 sq ft of net lettable area, it will be the largest single-building facility of its kind in Southeast Asia.

The earthworks and construction of the substructure were finished during the first half of 2011 as planned. Work on the superstructure is nearing completion and the installation of equipment began during this month. However, due to the delay in the delivery and receipt of key equipment (being the generator sets from Europe and chiller equipment), it is now expected that the initial 45,000 sq ft of net lettable area will be operational from July 2012, a delay from the original expectation that operations would commence in April 2012.

Demand for space in the new Datacentre has been unaffected by this delay and Teliti currently has LOIs for approximately 62% of the initial 45,000 sq ft. Coupled with further LOIs, the Company expects to convert these LOIs to letters of award from end of March 2012 onwards, which would mean the Company exceeding its target of pre-letting 40% of this space before opening.

When marketing the Datacentre, Teliti has encountered particular - and increasing - demand for cloud computing services. As a result, the Company has shifted some of its focus to providing these services alongside co-location. Teliti is in the process of equipping its Customer Experience Centre ("CEC") to offer cloud computing services, which will also be incorporated into the new Datacentre. As such, the cloud computing offering is progressing ahead of management's expectations.

The CEC was established as a demonstration centre to provide proof of concept to potential customers by showcasing the equipment and the Company's models for future datacentres. To help compensate for the delay in the Datacentre and to begin to satisfy the demand for the Datacentre and cloud computing services, Teliti has converted the CEC to a fully-operational centre. The CEC is comprised of 1,000 sq ft, of which 386 sq ft is currently being let for co-location services. The Company believes that the CEC will generate additional revenue once the cloud computing offering commences.

The Directors believe that whereas such a delay would ordinarily have resulted in a shortfall of revenue for the year ending 30 September 2012, they expect to offset the entire potential shortfall from the increased demand since Admission from potential customers wishing to rent a further 9,000sq ft of space in the Datacentre and from the acceleration of the cloud computing offering. As a result, the Company expects to meet market expectations for the full year ending 30 September 2012.

Solutions and Services

Since Admission, the Teliti Solutions and Teliti Services subsidiaries have remained active in winning new contracts and implementing existing projects. Recent significant contract wins include a three-year project for Pertubuhan Keselamatan Sosial (PERKESO), the Malaysian government's department of social security, to supply server units and maintenance for disaster recovery facilities. As previously stated, the requirement for disaster recovery facilities has been identified by the Company as a key growth driver. In December 2011, Teliti Services was awarded a contract by Integrasi Naluri Sdn Bhd, a Malaysian telecommunications company, to provide a two-year project for the conservation and digitalisation of archives for the Malaysian National Archives, part of Malaysia's Ministry of Information, Communications and Culture.

In addition, the Accountant General of Malaysia's Government has awarded a two-year extension contract for the maintenance of Financial Management and Accounting System ("GFMAS") to be carried out by Teliti Solutions and Teliti Services. The GFMAS is an application solution that enables the Accountant General to interact with its stakeholders with a standardised workflow, single point of entry and integrated database - and, as such, provides a common view of the entire government accounting operations. The scope of the contract includes software renewal maintenance and application support, consultancy services to maintain the GFMAS in several application areas and preventive and remedial maintenance of hardware.

Commenting on the developments since Admission, Hj Mohamed Nasir Abdul Majid, the Company's Chief Executive Officer, said:

"Whilst we are disappointed by the delay in the completion of the new Datacentre, we are pleased in the way we will offset the possibility of any shortfall as a result of better than expected demand for its services and the letters of intent that have been signed recently. Teliti Solutions and Services have made a good start to the financial year and this, coupled with the demand for higher value cloud services, will help to deliver revenues in line with market expectations."

Further details will be provided in the Company's full year results statement, which will be announced in March 2012.

Enquiries

 
 Teliti International Ltd 
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 Hj Mohamed Nasir Abdul Majid, Chief 
  Executive Officer 
  Rosmida Din, Chief Financial Officer    +603 7873 7733 
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 Daniel Stewart and Company plc 
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 Antony Legge, James Felix                +44 (0)20 7776 6550 
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 Luther Pendragon 
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 Harry Chathli, Claire Norbury, Alexis 
  Gore                                    +44 (0)20 7618 9100 
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This information is provided by RNS

The company news service from the London Stock Exchange

END

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